Average car insurance premiums rose by 58% in the last 12 months to £995.
According to the latest Confused.com Car Insurance Price Index, produced in association with WTW, the 58% rise represents an increase of £366 and means premiums have risen for nine consecutive quarters.
Meanwhile, EV premiums have risen even more sharply due to longer repair times and the specialist knowledge required to repair them.
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said, “The cost of car insurance spiralled in 2023 primarily due to the soaring price of used cars, although there is evidence of a market readjustment with values having slipped for the last four months.
“Insurers have also had to pass on the rising cost of spare parts and materials, more expensive repairs as cars become more sophisticated, labour shortages, extended vehicle loan times and a spike in personal injury claims.”
Steve Dukes, CEO at Confused.com, added, “The crumb of comfort will be that increases are somewhat smaller than in previous quarters, so many will be hoping this is a sign of a more stable period ahead. With things as volatile as they are, there’s a real need within the industry for more insight and sharing what we know. This can only benefit both businesses and customers as insurers make better, more informed decisions when it comes to pricing to try and stabilise the market even further.”
